Available in: Arabic, French, Spanish, Russian, and Chinese.

Under the theme “ Reimagining Economies: The Move Towards a Digital, Sustainable and Resilient Future. “

>> Economy Ministers: The launch of AIM digital edition is a new success story for the UAE that reflects its readiness to develop economic work according to innovative models

>> Bin Touq: The UAE has established its position as a leading global destination for qualitative projects and investment in the new economy sectors

>> Al Falasi: The event, in its virtual edition, is a greater opportunity for entrepreneurs to share knowledge and enhance access to global markets

>> Al-Zeyoudi: AIM will focus on discussing new methods of business sustainability, enhancing investment partnerships and increasing their diversification

Abu Dhabi, (,,, september2020) – Under the patronage of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, The Annual Investment Meeting, organized by the UAE Ministry of Economy, scheduled to be held from 20th to 22nd October 2020, under the theme “ Reimagining Economies: The Move Towards a Digital, Sustainable and Resilient Future.”

As the very first digital edition of the Annual Investment Meeting, AIM Digital will be the first mega digital event in the region to surmount the COVID -19 pandemic that will set a new benchmark for future virtual events in the UAE. It will utilize digital technology to create, showcase, and facilitate new investment opportunities for investors from different parts of the world, providing boundless possibilities across diverse sectors leading towards economic recovery, transformation, and sustainability.

To continue AIM’s mission of creating a roadmap to build a resilient future for the global economy despite the current pandemic, the three-day digital event will support and strengthen the investment environment and generate the most attractive and secure investment projects and opportunities for investors.

In this regard, His Excellency Abdullah bin Touq Al Marri, Minister of Economy, said: “The Annual Investment Meeting is an important global platform that brings together officials, experts, investors and major local, regional and international companies to exchange ideas and experiences and work together to develop the investment climate and link stakeholders to enhance development opportunities and come up with innovative solutions. The UAE has managed over the past years to consolidate its position as a pioneering and attractive investment destination for value-added projects, especially in the new economy sectors, and the country has also succeeded in developing its capabilities in planning and anticipating the future, and developing proactive solutions to enhance the resilience of its national economy in the face of global economic changes.

His Excellency added that the UAE government launched a comprehensive plan of 33 initiatives to support all economic sectors in the country and create a more flexible economic environment capable of generating diverse and sustainable opportunities, and encouraging investment in future sectors, especially digital transformation, advanced industries, applications of modern technology, research, development and innovation.” He said that the development of a digital model for a global platform for dialogue, such as the annual investment forum, is gaining great importance under the current circumstances and strengthens the country's ability to review its future vision and promote the opportunities offered in its priority sectors to attract and attract investments to it through innovative means.

His Excellency Dr. Ahmad Belhoul Al Falasi, Minister of State for Entrepreneurship and Small and Medium Enterprises, said: “The UAE continues its pioneering role as a hub for trade, investment development and business activities, whether in its local markets or at the regional and global levels, and is confirmed today by launching the first digital version of the Investment Forum. Its ability to adapt to the changes in the economic landscape and find innovative solutions to various challenges, such as those that we are witnessing today as a result of the spread of the Covid-19 pandemic, which highlighted the importance of adopting new methods in economic activity, stressing that the establishment of the forum hypothetically at this huge level with the participation of 170 countries represents a new success story that reflects the readiness of the country's economic and trade system to rapidly shift towards digital activities and adopt a more competitive, resilient and sustainable economic model.

Al Falasi added that the Annual Investment Meeting has provided over the past years a pioneering platform to support emerging companies and small and medium enterprises. His Excellency explained by saying: “We will work through this year's edition of AIM to continue supporting and encouraging entrepreneurs and owners of small and medium enterprises by providing them with vital channels for communication with their counterparts in other participating countries to acquire new ideas and knowledge, exchange experiences and attend relevant exhibitions, as well as to establish partnerships and open new markets for their products and services, and this would immediately reflect on their commercial success and their ability to continue and expand. ” stressing that the transition to the digital model this year It will allow for wider participation from different countries of the world and will thus increase opportunities for cooperation and growth for entrepreneurs.

“This year's Annual Investment Meeting, in its first digital edtion of its kind, is being held under unusual circumstances that the global economy is going through that requires intensifying dialogue and creating new links that support commercial and investment activities in various world markets.” He explained that the event will focus on discussing the countries and institutions efforts to provide new solutions and measures that support sustainability, business continuity and flexibility in facing various challenges. said His Excellency Dr. Thani Bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade.

His Excellency added: “Through this year's edition of AIM, we will make sure to allow businessmen and capital owners to meet and conclude strategic agreements and partnerships, and to open new and vital channels for work in various investment fields, explaining that the forum’s agenda for this year will be rich in sessions, dialogues and digital exhibitions. Over the course of three days, and expressing optimism that the outcomes of this session will contribute to creating more creative ideas, initiatives and qualitative projects that represent an added value to international efforts in enhancing the global economic climate and preparing it for the post-Covid-19 phase.

AIM’s unique digital exhibition will be participated by Ministries and Government Departments, International and Regional Organisations, Investment Promotion Agencies, Special Economic Zones, Private Equities, Angel Investors, Venture Capitalists, Banking & Financial Institutions, International Investment Institutions, Startups, Incubators and Special Programmes, SME Financing Institutions, Smart City Solution Providers, and Technology Providers, among others, from more than 170 countries, which means even more abundant opportunities for economic productivity and expansion.

“We are all aware that the global economy has been severely affected by the COVID-19 pandemic. However, this global outbreak must not cause economic paralysis and impede recovery but must serve as a stimulus to persistently look for opportunities to surmount the challenges. Technology is one of the tools available to us that we need to take advantage of to fight the impact of pandemic, which is why AIM Digital was conceived. It is indeed a major initiative that brings innovation and investment opportunities together in one virtual platform for investors to fuel economic resilience and transformation” said Mr. Dawood Al Shezawi, the Head of the Organizing Committee of the Annual Investment Meeting.

Diverse topics have been meticulously discussed such as Economic Fallout of Covid 19 on Female Founders, Accelerating Technologies during Time of Crisis, Ensuring Food Security & Sustainability against Pandemic: Innovation and Business Opportunities of Agriculture in SMEs, Strengthening the Global Partnership in International Trade during Pandemic Crisis, Post-Pandemic Cities: What Will They Look Like, Business Opportunities of Agriculture in SMEs, The Vision From Investors in The Middle East, Urban Mobility: Road To Recovery And The Effectiveness Of Attracting FDI in The Times Of Crisis, Smart Cities Of The Future Workshop, Challenges For Agribusiness in Latin America And The Vision From Investors in The Middle East. Additionally, AIM Digital continues to offer interactive investment activities 365 days of the year to support the global investment community.

AIM Digital Features

Placing the spotlight on AIM’s six pillars – Foreign Direct Investment, Foreign Portfolio Investment, Small and Medium-sized Enterprises, Startups, Future Cities, and One Belt, One Road, AIM Digital will showcase different features that will extensively boost investment opportunities in various sectors.

Pre-Conference Workshop: Conducted by renowned industry experts from across the globe, this series of interactive professional coaching sessions have been tailor-made to enrich the experience of its participants and prepare them in finding lucrative opportunities for investment.

Conference: A platform where expert insights, best practices, and ideal investment policies are shared with participants. Leaders and specialists from the investment community will lead the virtual discussions to explore relevant topics about each of the six pillars of AIM.

Exhibition: Participated by the best local and international exhibitors across the globe, the Exhibition features different countries, smart city solution providers, startup companies, and SMEs, with the ultimate goal of achieving economic growth for their respective country and region.

Digital Country Presentation: It unveils the world’s best investment destinations by featuring every country’s key economic and investment environment features digitally. A platform for municipalities, cities, and countries to promote investment opportunities at their location and highlight the potential of their sector to prospective investors.

Startups Virtual Pitch Competition: An opportunity to present business ideas to a diverse array of global investors on the lookout for the next big thing. The winners of the start-up virtual pitch competition will compete for the National Champions League. Individual startups may register for the Global Technopreneurs.

Conglomerate Presentations: A virtual line up of Large Multi-Industry Groups keen on showcasing their investment roadmaps and key sectors of interest to an impressive panel of AIM investment promotion agencies, SMEs and government officials enthusiastic about making sustainable investments in their respective countries.

Awards: Recognizing the outstanding contributions of Investment Promotion Agencies, SMEs and Start-ups in bolstering and securing investment for a particular location. Awards will be presented to various investments made to regions and countries that have resulted in significant economic growth.

Investors' Hub: Held within a digitally secured environment, a virtual meeting where top investors will have an audience with official government representatives to cultivate the formation of investment partnerships and collaboration.

Regional Focus Sessions: Centered on three regional conversations that examine the economic landscapes of Africa, Asia and Latin America, the discussions will be an informed exploration of the regions' risks, challenges and opportunities for growth that are waiting to be harnessed through regional cooperation.

Made in Series: This viable digital feature is open to all SMEs who wish to showcase their local products and services to an international platform. Being a part of the series could help the participating country to promote their locally manufactured products or services, present value proposition to a focus global audience, and network with potential global partners for future collaboration.

Investment Roundtables: The investment roundtable feature of AIM 2020 is a gathering of Ministers, Deputy Ministers and Heads of Investment Promotion Agencies (IPAs), Investors and Decision Makers. The main objective of this feature is to facilitate a platform for government decision makers to discuss with investment companies to create a feasible investment model matching government and investor requirements. At the end of the sessions, a feasible investment model shall be developed.

Networking Features: A medium to strengthen business relationships and serve to the expansion of business portfolios. Vast features are conveniently available and accessible for ease of communication and networking on the platform.

The Annual Investment Meeting also plans to expand its footprint across the economic landscape as it gears up for its upcoming hybrid edition which will take place on March 21 – 23 followed by its Mega edition during EXPO2020, the World’s Greatest Show. The Hybrid Edition will be primed to feature massive investment opportunities from more than 170 countries, securing the highest return of investments for investors across the globe.

Furthermore, the Annual Investment Meeting is also delighted to launch its official e-magazine, Global Catalyst, which will serve as the global investment community’s no.1 digital source of the latest news, feature articles on trending topics, and critical analysis on fundamental issues affecting the investment environment, serving as a powerful catalyst for global economic growth. The Global Catalyst, is a quarterly digital publication that provides a captivating blend of news and features about the investment environment, as well as thorough analyses and research studies on major issues concerning the global economy. It also features success stories and in-depth interviews from prominent personalities in the global investment community to offer invaluable insights. In its first issue, Global Catalyst will give emphasis on its theme, “Rebooting the Future of Global Economy” which sparks the revitalising idea of starting anew, finding innovative methods and strategies, and building new perspectives in relation to the global economy.

Acknowledging the shift to the digital landscape and integrating technological advancements assists in developing smart, digital and sustainable nations as AIM Digital generates boundless possibilities towards economic recovery, transformation, and sustainability.

For more information on AIM Digital, visit www.aimcongress.com

About the Annual Investment Meeting

The Annual Investment Meeting (AIM) is an initiative of the UAE Ministry of Economy, held under the patronage of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE, and Ruler of Dubai. AIM is the world’s leading investment platform with over 16,000 participants coming from more than 140 countries. Over 400 exhibitors and co-exhibitors, 60+ high-level dignitaries, 150+ investment specialists and experts have participated in AIM 2019.

The Annual Investment Meeting in partnership with their Sustainable Partner, Bedayat by Sustainable City presents the UAE Emirates Startup Roadshow to be held on 17^th and 20^th September, 2020.

Aligning with precautionary measures, smart solutions and a resilient environment, the UAE Emirates Startup Roadshow is all set to cover four emirates: Dubai, Ras Al Khaimah, Abu Dhabi, Sharjah across an agile platform.

Two competitions will be hosted on one day beginning in Dubai, Ras Al Khaimah following with Sharjah and Abu Dhabi respectively. The chosen winners will receive numerous benefits such as access to all the features of Digital AIM 2020 -- a special digital edition of The Annual Investment Meeting, this year.

In addition, the winners from all emirates will also be provided with a virtual exhibition kiosk, a viable chance at potential meeting with investors and access to participating at the AIM Global National Champions League 2020, for a prize of USD 50,000 (USD10,000 per winner)

 
In collaboration with the Annual Investment Meeting’s Sustainable Partner, Bedayat at the Sustainable City, an active initiative has been taken to organize mentoring sessions prior to the pitch competition and provide 4 winners from each emirate a tour at Sustainable City along with a workshop.

Mr. Karim El-Jisr, Chief Sustainability Officer at Diamond Developers and Executive Director for SEE Institute said, “The UAE Emirates Startup Roadshow is a smart initiative that provides the necessary resources for businesses to move to the next stage of growth by encouraging diversification, determination and efficiency.

Our Sustainable Partner, Bedayat at the Sustainable City is going to add an exceptional touch by organizing a mentoring session prior to the competition. This is indeed very special as UAE is the home base for AIM.”

UAE is home to various futuristic, smart and resilient projects, with potential start-ups gaining recognition round the clock.

In 2020, investments in Middle East start-ups are set to exceed $1bn.

In addition, the UAE has accounted for 60% of total funding across the Middle East and North Africa. MENA's startups have seen a steady increase in funding in Q1 2020. $277M was invested in 108 startup investment deals in MENA, an increase of 2% in total funding from Q1 2019 to Q1 2020 as derived from data platforms, MAGNiTT and SME10x.

The Annual Investment Meeting cordially invites all keen investors looking to expand their business portfolio across the emirates to participate in a ground-breaking experience - the UAE Emirates Startup Roadshow.

Foreign direct investment (FDI) inflow into the UAE jumped over 34 per cent to $14 billion (Dh51.4 billion) in 2019 as compared to $10.4 billion (Dh38.2 billion) in the previous year following major investments by US private equity firms in Abu Dhabi's energy sector.

The UAE surpassed Turkey to become the largest recipient of foreign investment last year in the Middle East and also accounted for half of total investment that flowed into the region in 2019, according to World Investment Report released by UN Conference on Trade and Development (Unctad).

The large increase in FDI to UAE was largely due to major investments made to Abu Dhabi National Oil Company (Adnoc) assets.

The US-based asset managers BlackRock and KKR Global Infrastructure acquired a 40 per cent stake in Adnoc's pipeline assets for about $4 billion.

Italy's Eni SpA also acquired a 20 per cent stake in Abu Dhabi Oil Refining Company for more than $3 billion.

"Abu Dhabi has supported FDI inflows to the UAE for the past few years with its streamlined procedures and capacity in facilitating megadeals. In 2019, the emirate further strengthened its commitment to foreign investment by launching the Abu Dhabi Investment Office under the Ghadan 21 programme, a broad-based initiative to enhance the commercial ecosystem, including by cultivating an attractive and diversified environment for FDI," Unctad said.

It said the approval of the positive list for FDI in the UAE in April 2020 paves the way for full foreign ownership in many activities and could support investment flows to the country in the longer term.

While FDI outflow from the UAE also moved up slightly last year from $15 billion to $16 billion, an increase of 5.5 per cent.

Regional performance

FDI to Middle East declined by 7 per cent to $28 billion as against $30.1 billion in 2018. Just three countries - the UAE, Turkey and Saudi Arabia - accounted for the majority of inflows in 2019.

FDI inflows into Turkey slumped from $13 billion in 2018 to $8.4 billion last year, slipping into the second position after the UAE.

In the GCC, Saudi Arabia was the second largest recipient of foreign investment, receiving $4.56 billion last year as compared to $4.24 billion in the previous year.

Flows to Saudi Arabia increased for the second consecutive year by a further 7 per cent to $4.6 billion, mainly because of a few large M&A deals.

FDI to Bahrain fell by 43 per cent to below $1 billion in 2019. The main reason was the country's investment profile, which centres on light manufacturing and services, which are more sensitive to global and regional economic headwinds.

Regional outflows

FDI outflows from Middle East contracted significantly, from $50 billion in 2018 to $36 billion in 2019.

In Saudi Arabia, outward investment declined from $23 billion in 2018 to $13 billion, and firms in Kuwait divested $2.5 billion of overseas investments.

Major outward investments announced in 2019 included a $10 billion project by Saudi Aramco to develop oil and gas facilities in China and a $9 billion oil project by Qatar Petroleum to expand its existing facilities in the US, although it is unclear when these projects will be fully realised.

FDI inflow into the Middle East, 2019

UAE: $13,787m

Turkey: $8,434m

Saudi Arabia: $4,562m

Oman: $3,125m

Lebanon: $2,128m

Bahrain: $942m

Jordan: $916m

Kuwait: $104m

Palestine: $176m

Top global countries for FDI inflows, 2019

US: $246B

China: $141B

Singapore: $92B

Netherlands: $84B

Ireland: $78B

Brazil: $72B

Hong Kong: $68B

UK: $59B

India: $51B

Canada: $50B

source: investinabudhab

Dubai, UAE- The Islamic Development Bank Group in partnership with the UAE Ministry of Economy and Annual Investment Meeting, will conduct a live webinar entitled “IsDB Group Private Sector Action Response to COVID-19” on the 6^th of July at 01:00 PM (KSA Time) to discuss the challenges facing the private sector and global economy during the COVID-19 outbreak.

The live session will also present the immediate joint action response of the IsDB Group Private Sector Entities namely, the Islamic Corporation for Insurance of Investments and Export Credits (ICIEC), Islamic Corporation for the Development of the Private Sector (ICD), and the International Islamic Trade Finance Corporation (ITFC), in order to overcome the COVID-19 pandemic.

The webinar will discuss the future outlook to overcome the COVID-19 pandemic. In addition, the webinar will highlight the IsDB Group’s US$2.3 billion Strategic Preparedness and Response Programme for COVID-19 under its 3Rs approach “Respond, Restore and Restart”.

The keynote speakers who will share their in-depth perspectives in the webinar are Mr. Ousama Kaissi, the Chief Executive Officer of the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC); Mr. Ayman Sejiny, the CEO & General Manager of the Islamic Corporation for the Development of the Private Sector (ICD), Eng. Hani Salem Sonbol, the Chief Executive Officer of the International Islamic Trade Finance Corporation (ITFC) and Ms. Cornelia Meyer, the Chairman & CEO of Meyer Resources.

Mr. Ousama Kaissi, the Chief Executive Officer of The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and one of the keynote speakers in the webinar, stated: “While the disruption to global trade and investment flows is unavoidable due to the unprecedented nature of the coronavirus pandemic, it is essential that institutions with the mandate and means to stabilize the trade ecosystem during the crisis heighten their efforts to do so.

ICIEC is honoured to be a part of this webinar with the UAE Ministry of Economy and our IsDB Group peers in order to share how we are employing our multilateral insurance solutions toward the collective recovery of member countries.”

“The private sector can play a pivotal and proactive role to close funding gaps in the COVID-19 response. It is capable to minimize short-term risks to employees and long-term costs to businesses and the economy as a whole. ICD will work closely with 100+ local and regional financial institutions in its network to provide necessary support so they can continue to fund private sector, particularly SMEs in affected sectors within the markets they operate in” stated Mr. Ayman Sejiny, the CEO of the Islamic Corporation for the Development of the Private Sector (ICD), and one of the keynote speakers in the webinar.

Eng. Hani Salem Sonbol, the Chief Executive Officer of the International Islamic Trade Finance Corporation (ITFC) and one of the keynote speakers in the webinar, stated: “Since the outbreak of the pandemic, ITFC has moved quickly to put in place emergency financing measures to ensure that member countries continue to receive the support needed.

Our COVID-19 ‘Rapid Response Initiative’ (RRI) has made US$ 300 million immediately available.

This has facilitated the immediate access to medical equipment, the supply of staple foods and critical energy needs. Continuing to work closely with IsDB and partners, ITFC is moving forward with its Recovery Response Plan (RRP) with the provision of US$550 million for deployment over the next two years.

The RRP is aimed at fixing the socio-economic damage which is expected to last longer than immediate impact of the virus; including the provision of lines of financing to fund the private sector and SMEs.”

“It is a great privilege to be in collaboration with the UAE Ministry of Economy and Islamic Development Bank Group in organizing this live webinar session that will tackle the major challenges currently being confronted by the private sector and the global economy as a whole,” Mr. Walid A. Farghal, Director General of the Annual Investment Meeting mentioned.

“The private sector is indispensable to economic growth. In fact, it contributes up to 90 per cent of employment and provides over 80 per cent of government revenues in developing countries. Thus, it is essential to highlight this huge initiative by the IsDB Group that enables the sectors adversely affected by COVID-19 to continue their business activities,” he furthered.

During the webinar, 3 online initiatives will be launched jointly by IsDB Group Private Sector Entities and AIM.

These initiatives will support the private sector, trade and exports in OIC member countries and will be focusing on:

• Digital Country Presentations: to promote and showcase the investment and trade opportunities in OIC member countries which will serve as a virtual gathering and strategic innovative platform to support the investors, government agencies, private institutions, investment promotion agencies to discuss the best possible means to attract FDI.
• Startups Virtual Pitch Competition: to connect Startups globally and support them in meeting potential partners and investors from other parts of the world.
• MADE IN…..SERIES: this digital platform is open to all SMEs who want to showcase and present their local products, project and services to international audience.

The webinar will gather more than 700 participants from multiple sectors across the globe such as government officials, Chairmen, Presidents & CEOs of local and international companies, multilateral and financial institutions, Chambers of Commerce & Industry, business associations, investment promotion agencies, individual investors, and entrepreneurs.

Smart cities are expected to boost lucrative business opportunities for the UAE and the region. However, the Internet of Things (IoT), the technology underpinning these complex and interconnected urban networks, offers a considerably expanded attack surface for cyber adversaries of all kinds, according to a report by Digital14, a UAE-based advisor in digital transformation and cyber resilience.

There are an estimated 22 billion networked devices worldwide. The interconnected nature of smart cities means that by 2025, that number is forecast to rise to 38.6 billion.

Each of these devices serves as an entry point for malicious actors, with everyday gadgets such as IP cameras and digital video recorders (DVRs) likely to be at the greatest risk.

In fact, more than 25 percent of attacks against enterprises this year will involve IoT devices. The GCC is increasingly prone to IoT attacks, with 18.45 percent of public-facing hosts in the UAE alone potentially vulnerable to such attacks, according to the report.

Key highlights of the report showed that the UAE is hit by an average of 304 attacks per day, the highest in the GCC. Over 42,500 IP cameras are potentially vulnerable to cyberattacks in the GCC while nearly 8,000 digital video recorders (DVRs) in the region are openly exposed to an outside network.

With the UAE embracing smart city technologies and taking a leadership role in this field, it is no surprise that the country takes the regional top spot in the Global Connectivity Index.

Expecting the growth of this sector to continue, the report proposes six actionable takeaways for organisations to defend themselves against new and evolving threats, including validating IoT devices before deployment, continuously monitoring all devices on the IoT network, and isolating IoT devices away from crucial and sensitive networks.

With the vast opportunities that smart cities bring, both in terms of improved business productivity and consumer experience, operators and device owners must be conscious of the potential vulnerabilities within their networks.

Only by safeguarding their networks, can smart cities truly realise their promised potential.

source: sme10x

The total gross deposits of the private sector in the UAE banks amounted to circa AED1.076 trillion by the end of March 2020, a 1.7 percent growth of AED18 billion from AED1.058 trillion in December 2019, figures by the Central Bank of the United Arab Emirates have shown.

These deposits account for around 58 percent of the total gross deposits held by the UAE banks, which stood at around AED1.852 trillion by the end of the same month.

In the meantime, the domestic credit to private sector amounted to AED1.149 trillion, a growth of 1.3 percent from AED1.134.6 trillion in December 2019.

The growth in private sector credit is a significant indicator of its contribution to economic activity and reflects increase in the sector's investment activity.

source: wam.ae

The central banks of the United Arab Emirates (UAE) and Saudi Arabia, the two largest Arab economies, on Saturday announced stimulus plans worth a combined $40 billion to ease the impact of the coronavirus outbreak in their respective countries.

The UAE regulator plans to support banks and businesses in the country, where the outbreak is affecting major economic sectors such as tourism and transport, with a 100 billion dirham ($27 billion) economic plan, it said on Saturday.

In a separate statement, the Saudi Arabian Monetary Authority said it had prepared a 50 billion riyal ($13.32 billion) package to help small and medium-sized enterprises (SMEs) cope with the economic impacts of coronavirus.

The disease has so far infected 85 people in the UAE and 105 in Saudi Arabia.

The Saudi funding aims to grant SMEs six-month deferrals on bank payments, concessional financing and exemptions from the costs of a loan guarantee program, SAMA said.

Concerts, sporting events and industry conferences have been canceled or postponed in the past few weeks in the UAE to contain the spreading of the new coronavirus.

In Dubai, the Middle East’s trade, finance, tourism and transportation hub, some businesses have started to feel the pain from the global travel slowdown caused by the outbreak.

Saudi Arabia, which has already suspended the Umrah pilgrimage and locked down its eastern Qatif region where many infections are located, plans to halt all international flights for two weeks from Sunday.

The UAE central bank said it will provide 50 billion dirhams through collateralized loans at zero cost to all banks operating in the UAE while an additional 50 billion dirhams will be freed up from lenders’ capital buffers.

“The CBUAE is allowing banks to free-up their regulatory capital buffers to boost lending capacity and support the UAE economy,” it said in a statement.

It said the scheme offers banks relief for up to six months from the payments of principal and interest on outstanding loans for affected private sector companies and retail customers.

Committed to peg

Adding to a likely economic slowdown caused by the virus, Saudi Arabia and the UAE are also expected to face wider fiscal deficits this year because of lower oil prices, due to an oil price war between Riyadh and Moscow.

The Gulf states’ currencies, which are pegged to the U.S. dollar, weakened in the forwards market last week.

The UAE regulator said on Saturday it maintained its commitment to the peg for the dirham, and said foreign currency reserves amounting to 405 billion dirhams as of March 10 were “adequate” to safeguard the stability of the currency.

Other measures introduced by the UAE central bank on Saturday include reducing by 15-25% the amount of capital banks have to hold for loans to SMEs, and better terms for first-time home buyers.

Importantly for the local real estate sector - which has been struggling in Dubai for the past decade - banks will be allowed to increase their exposure to real estate loans.

“When the exposure reaches 20% of the banks’ loan portfolio (measured by risk-weighted assets), banks will be allowed to increase it to 30%, but will be required to hold more capital,” it said.

The central bank also introduced regulations which reduce banking fees for small companies.

The Dubai and Abu Dhabi stock exchange indices dropped last week amid coronavirus concerns and because of tumbling oil prices.

To contain volatility in the markets, the central bank said it plans to issue guidelines on margin calls, asking banks to request additional collateral before liquidating stocks in the event of a market downfall.

source: cnbc

Large banks based in the United Arab Emirates (UAE), one of the Middle East’s leading financial hubs, have been investing in digital transformation projects to compete in an industry with rapidly changing consumer requirements – according to analysis performed by Bloomberg Intelligence.

The analysis revealed that technological innovation is vital when it comes to acquiring market share and developing flexible, cost-effective solutions.

Higher IT spending may lead to a consolidation of smaller financial institutions as larger banks upgrade their legacy platforms, the analysis noted.

It also mentioned that traditional banks might also merge with other institutions in order to become stronger and more competitive.

The analysis found that Emirates NBD (ENBD), one of the largest banking groups in the Middle East, is ahead of its competitors in the region in terms of its digital transformation efforts.

It was notably among the first to migrate its core banking platforms to an application program interface (API)-enabled solution, which was backed by a AED 1 billion (appr. $272.3 million) investment.

ENBD’s API Sandbox, introduced back in November 2018, offers a controlled environment where Fintech firms can pilot various solutions that could be used to enhance the bank’s core operations.

Competitors are likely to work on similar projects, and would have to follow policy requirements that are somewhat similar to Europe’s Payment Services Directive, which requires giving open-banking access to all businesses, which includes Fintech firms.

source: crowdfundinsider

Leadership determined to scale new heights by boosting all sectors

UAE - Rapid economic diversification underpinned by a string of bold reforms and a series of government stimulus measures are set to drive UAE growth at a steady pace as its gross domestic product (GDP) remains on track to surpass the $500 billion mark over the next few years.

The latest projections by the International Monetary Fund (IMF) show that the UAE's non-oil sector, pivotal to this all-round growth, will surge from 1.3 per cent in 2018 to 1.6 per cent in 2019 and 3 per cent in 2020.

As a result, oil GDP growth is forecast to slow down from 2.8 per cent in 2018 to 1.5 per cent this year and 1.4 per cent next year when non-oil sectors such as tourism, aviation, retail, hospitality, real estate and construction will spur the expansion as the World Expo gives an added momentum to the pace of growth.

According to the Institute of Chartered Accountants in England and Wales (ICAEW), Expo 2020 Dubai and the government's Dh50 billion fiscal stimulus would be quite pivotal to the rebound that is expected to boost the country's non-oil GDP growth to about 2.8 per cent.

In its Economic Update: Middle East Q4 2019, produced in partnership with Oxford Economics, the ICAEW says Expo 2020, which is anticipated to attract 25 million visitors - 14 million from overseas - is forecast to contribute up to 1.5 per cent of the UAE's overall GDP in 2020.

According to economists, the expansion in non-oil activity is slowly beginning to translate into stronger job creation, although at a modest rate. Total employment in the private sector increased by one per cent year-on-year in the second quarter 2019, up from just 0.1 per cent year on year in first quarter.

Although the legacy of Expo 2020 is hard to estimate, the investment climate remains positive with infrastructure upgrades.

In 2019, the UAE has attracted $12.7 billion in foreign direct investment in the first half, an increase of 135 per cent year-on-year, while tourist arrivals rose 3 per cent in the same period to reach 8.4 million.

The IMF predicts that the UAE's oil output will continue to increase from 3.02 million barrels per day (bpd) last year to 3.10 million bpd in 2019 and 3.17 million bpd next year.

Jihad Azour, director for the Middle East and Central Asia Department at the IMF, said in the current context, the encouraging signs is that despite the volatility in crude prices, non-oil growth is growing steadily but it has not reached the level of first five years of this decade.

"We expect non-hydrocarbon real GDP growth to pick up to 1.7 per cent in 2019 and 2.2 per cent in 2020, supported by Abu Dhabi's three-year stimulus package and Dubai's spending linked to Expo 2020," said Garbis Iradian, chief economist for the Middle East and North Africa at the Institute of International Finance (IIF).

With a GDP of $414 billion in 2018, the UAE has been successfully diversifying away from oil, which accounted for more than 85 per cent of the economy in 2009.

The UAE Ministry of Economy has predicted that the share of the non-oil sector in the GDP to rise to 80 per cent by 2021, compared to 70 per cent in 2017.

A massive construction boom, an expanding manufacturing base and a thriving services sector are helping the UAE diversify its economy while tourism continues to be a key non-oil source of revenue with some of the world's most luxurious hotels being based in the UAE.

Nationwide, there is currently $350 billion worth of active construction projects underway.

The IMF has also predicted that a negative inflation in UAE this year at minus-1.1 per cent and 2.2 per cent for 2020.

While the Emirates' nominal GDP is expected to slip from $414.2 billion in 2018 to $405.8 billion this year, it will recover again next year to $414 billion in 2020 on the back of non-oil sector growth.

Another growth driver of the UAE economy is the aviation market that is poised to grow 170 per cent by 2037 while supporting 1.4 million jobs and contribute $128 billion to the nation's economy, according to the International Air Transport Association, or Iata, said on Tuesday.

In its latest study on the importance of air transport to the UAE, the International Air Transport Association said the domestic aviation industry at present supports nearly 800,000 jobs and contributes $47.4 billion to the economy, accounting for 13.3 per cent of the UAE's GDP.

However, given the ongoing prioritisation of aviation by the UAE government as a key strategic asset, the sector could generate an additional 620,000 jobs and an extra $80 billion in GDP for the nation's economy by 2037, the trade body of 290 airlines across the world said.

According to Suhail bin Mohammed Faraj Faris Al Mazrouei, UAE Minister of Energy and Industry, the UAE is reviewing a new strategy that seeks to raise the industrial sector's contribution to GDP and boost economic growth.

The goal is to build a diversified and sustainable knowledge-based economy in which the industrial sector plays a pivotal role led by qualified national cadres, according to Al Mazrouei.

The new national strategy aims to achieve sustainable development through several pillars, including supporting innovation, efforts to reduce carbon emissions, stress on small and medium enterprises, adoption of Fourth Industrial Revolution (4IR) technologies, sustainable manufacturing, developing advanced skills and establishing partnerships to integrate local businesses into global value chains in order to increase our export prospects, the minister said.

Already, the UAE's economy is moving towards greater diversification and a future-based on leadership in non-oil sectors. Currently, the contribution of the industrial sector to the UAE's GDP is around 9 per cent and is poised to grow further.

Industrial activity, which increased by 4.8 per cent during 2017 alone, is certainly one of the main engines of our economic development and plays a pivotal role in boosting the country's GDP.

The steady growth witnessed over the past five years demonstrates the success of the state in establishing a strong manufacturing base and its contribution to economic diversification.

According to figures revealed by the Federal Competitiveness and Statistics Authority, the manufacturing sector's contribution to the UAE's non-oil GDP grew 2.5 per cent to Dh122 billion in real prices in 2018 from Dh119.7 billion in 2017.

The fast diversifying and innovation-driven industrial sector, a key driver of economic growth, is expected to account for 20 per cent of the nation's gross domestic product by 2030.

The UAE's advancement in economic diversification has been demonstrated by a number of international indicators. The nation has advanced 13 places in eight years on the Unido's Industrial Competitiveness Index.

The UAE ranked 41st on the Index in 2018, compared to 54th in 2010. The UAE also ranked first regionally and fifth globally among the most competitive countries in the world in the IMD World Competitiveness ranking 2019 report. And the UAE is ranked third globally in the Economic Diversity Index in the same report.

The UAE Centennial 2071 project stresses the importance of building an economy equipped to compete with the world's best as the nation sustains efforts to establish itself as a global platform and open laboratory for the applications of 4IR, given that the Arab world's second-largest economy has made the adoption of innovative technologies central to its economic development through the UAE Strategy for the Fourth Industrial Revolution.

According to analysts, achieving this objective will involve raising the level of productivity in the national economy, supporting national companies to gain access to international markets, investing in research and development in important sectors, focusing on innovation and entrepreneurship, and improving the professional level of Emiratis and providing them with a new working culture.

The outlook for the industrial sector in the UAE is very bright indeed, especially considering the success of some of its national industrial companies in establishing themselves as major contributors to global value chains in a variety of advanced industrial sectors, such as aviation and defence, aluminium and other leading industries.

Over the next 10 years, UAE's specialised industrial zones are on track to play an important role in attracting local and international capital to invest in the industrial sector. The UAE also seeks to attract international companies to launch pioneering projects in this country and to develop strong partnerships with industrial companies at both the local and international level.

Adding to this, the UAE is giving strong emphasis to the SME sector, expect them to enter the advanced industrial sector and contribute to global value chains. The government also expects homegrown companies to eventually play a major role in driving innovation and employing new technologies within the national industrial sector.

The federal government has stressed that education will remain a priority and the nation's path to the future. The new year's federal budget has allocated a large proportion to funding federal schools and development projects. The UAE views Emiratisation as a true measure for success.

The Cabinet has approved a national fund to support and train Emirati jobseekers and made legal amendments to ensure Emiratis in the private sector receive a pension as they would in the public sector.

The Emiratisation plan includes issuing regulations and setting new targets to provide 20,000 job opportunities for Emiratis in strategic sectors over the next three years, with an average of 6,700 jobs annually.

Under the plan, a Dh300 million fund will be established to create specialised training programmes for Emiratis as well as a new system will be adopted to train 8,000 Emirati graduates annually in government, semi-government and private entities for 6-12 months.

A string of recent reforms and new liberal rules will see that the UAE sustain its growth momentum to become a $500 billion economy in the not too distant future. The government's move to allow up to 100 per cent foreign ownership of some companies operating in 13 sectors is one of such bold recent initiatives, according to analysts.

KPMG's 2019 Growth Promise Indicators (GPI) report said the UAE offers the best growth prospects among the Arab countries, even better than bigger economies such as China, India and South Korea. The country has jumped three places to 22nd position among 180 countries, thanks to infrastructure development, particularly in transport and human development.

source: zawya